Market risk
Natural gas caught by an energy price wave
US natural gas prices have been dragged up by crude oil prices despitehaving different fundamentals. Eric Fishhaut at GlobalView Softwarecharts the trend
Pricing volumetric risk
Sergey Kolos and Konstantin Mardanov of Citi Commodities presenta general framework for pricing contracts with volumetric risk.They concentrate on a simple payoff and focus the discussion on themain challenge of such contracts, the pricing of the…
A grounded business
As high fuel costs force many airlines to introduce fuel efficiencyprogrammes and even resort to grounding aircraft, Katie Holliday looksat the likely effects of these measures on jet fuel demand and price inthe coming months
Every cloud...
The weather derivatives marketcontinues to gain end-user, hedge fundand investor interest. Roderick Bruceexamines the forecast and finds a silverlining on the current Wall Street cloud
Moscow launches Brent contract
Moscow’s international exchange, the Russian Trading System (RTS-FORTS), has today introduced a Brent crude oil futures contract, which will be denominated in US dollars.
UBS exits commodities
Investment bank UBS has announced today that it will end its trading operations in the commodity markets, except precious metals.
Imarex takes majority stake in Bravo Futures
Freight broker Imarex has exercised an option to take a majority stake in Italian forward freight agreement (FFA) brokerage Bravo Futures. Bravo will now be known as Imarex Italia.
TSOs unite in step towards pan-European power market
The European Commission has given the go ahead for the creation of the Capacity Allocation Service Company for the Central West-European market (CASC-CWE) in a move towards a regional electricity market across five European countries.
EDF Trading to acquire Eagle Energy from Lehman Brothers
London-based EDF Trading has agreed to purchase Eagle Energy Partners, a Houston-based energy marketing and services company acquired by Lehman Brothers in May 2007.
Parity launches new platform
Parity Energy, a New York-based brokerage, has launched the latest version of its online trading platform, Parity Energy Platform 3.0 (PEP 3.0).
APX Group buys Endex
Amsterdam-based exchange operator APX Group has purchased fellow Dutch energy exchange company Endex for an undisclosed fee, and plans to merge the two businesses.
CFTC to examine crude oil volatility
Record price movements in the price of crude oil earlier this week have drawn further scrutiny from regulators.
Merrill Lynch European power market expansion plans remain in place
Merrill Lynch’s plans to expand further into European power markets remain unaffected by the bank’s impending merger with Bank of America, says Rupen Tanna, managing director and co-head of commodities.
Imarex to launch electronic Time Charter Equivalent contracts
Norwegian freight derivatives exchange Imarex will introduce the first electronic Time Charter Equivalent (TCE) contracts in October, the company has announced.
Goldman and Morgan become bank holding companies
Goldman Sachs and Morgan Stanley have applied to the US Federal Reserve to become bank holding companies, in response to the crisis that has seen the bankruptcy of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America.
Linn Energy terminates $68m of commodity contracts with Lehman
US oil and gas company Linn Energy has terminated all of its commodity derivative contracts with Lehman Brothers, and has replicated and re-hedged each of the contracts at identical strike prices with an unnamed counterparty, Linn Energy announced.
Enhanced trading platform launched in US
Elysian Systems has released a new version of its electronic trading platform, called Liquid 4, which can accommodate online trading in energy, commodities, fixed income and financial instruments.
CFTC report on swap dealer and index trader activity
Following an unprecedented survey of off-exchange swap dealers and commodity index funds carried out in June 2008, the Commodity Futures Trading Commission has made some recommendations on activities of swap dealers and commodity index traders.
Bank of America buys Merrill Lynch for $50 billion
Bank of America announced today it will acquire Merrill Lynch in a $50 billion all-stock deal, rounding off an explosive weekend on Wall Street.
Lehman Brothers files for bankruptcy protection
Lehman Brothers has filed for bankruptcy. In an announcement early this morning, the firm said it intended to file a petition under Chapter 11 with the Southern District Court of New York.
Reliance establishes new trading arms
India’s oil & gas company Reliance Industries, part of Reliance Group, is to set up two new trading subsidiaries in London and Singapore.
India’s NCDEX launches futures contract in thermal coal
India’s National Commodity and Derivatives Exchange Limited (NCDEX) today launched a thermal coal futures contract.